Correlation Between Southern Banc and First Financial
Can any of the company-specific risk be diversified away by investing in both Southern Banc and First Financial at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Southern Banc and First Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Southern Banc and First Financial, you can compare the effects of market volatilities on Southern Banc and First Financial and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Southern Banc with a short position of First Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southern Banc and First Financial.
Diversification Opportunities for Southern Banc and First Financial
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Southern and First is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Southern Banc and First Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Financial and Southern Banc is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Southern Banc are associated (or correlated) with First Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Financial has no effect on the direction of Southern Banc i.e., Southern Banc and First Financial go up and down completely randomly.
Pair Corralation between Southern Banc and First Financial
If you would invest 3,623 in First Financial on September 14, 2024 and sell it today you would earn a total of 1,338 from holding First Financial or generate 36.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.37% |
| Values | Daily Returns |
Southern Banc vs. First Financial
Performance |
| Timeline |
| Southern Banc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| First Financial |
Southern Banc and First Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Southern Banc and First Financial
The main advantage of trading using opposite Southern Banc and First Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southern Banc position performs unexpectedly, First Financial can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in First Financial will offset losses from the drop in First Financial's long position.| Southern Banc vs. 1895 of Wisconsin | Southern Banc vs. OptimumBank Holdings | Southern Banc vs. First National Bank | Southern Banc vs. CNB Financial |
| First Financial vs. Chemung Financial Corp | First Financial vs. Citizens Northern Corp | First Financial vs. National Bankshares | First Financial vs. Fidelity DD Bancorp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |